Potential Support and Resistance Areas on Currencies

Potential Support and Resistance Areas on Currencies

These are the potential areas of support and resistance for the EURJPY, USDCAD, and USDCHF this week.

Pixabay Images

The following charts are for the 180 minute time frame with the support and resistance from the longer period time frames.  The colors for the plus sign and dots represent the following:

  • Blue plus sign and dot show the support or resistance for the 180 minute time frame
  • Red plus sign and dot show the support or resistance for the daily time frame
  • Black plus sign and dot show the support or resistance for the weekly time frame

EURJPY

The ECB will announce the Main Refinancing Rate tomorrow morning, January 24th, at 7:45 am New York time.  This will be followed by the ECB Press Conference at 8:30 am New York time.  The 180 minute EURJPY time frame indicates that price is potentially in a consolidation pattern because both the daily and weekly ATRs are moving sideways (not increasing nor decreasing).  Currently, both the blue and red ATRs are below price with the black ATR above.  Additionally, a micro view of the highs and lows show a potential pennant developing.  Price may return to the lower line of the pennant, which also coincides with the blue ATR.  If this area holds, there is a potential for price to increase and test the black ATR.

Potential Support and Resistance Areas EURJPYUSDCAD

The USDCAD 180 minute time frame shows that price is moving down to the blue ATR with the red ATR also below price.  If price tests the blue ATR and holds (a bullish candlestick formation will indicate that potential support has been found), then price would test the red dot and black ATR area.  If the blue ATR does not support price, then we could see a retest of the red ATR at around 1.3250.

Potential Support and Resistance Areas USDCADUSDCHF

The USDCHF 180 minute chart has recently tested the blue ATR and found support.  However, three is resistance at the prior high, around .9986.  If price cannot close above the prior high then, more likely than not, another pullback to find a stronger support area is likely.  If price manages to close above the .9986 area, then price could continue upwards to the black dot at around 1.0100.

Potential Support and Resistance Areas USDCAD

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